Prada IPO five time subscribed: source

By IBT Staff Reporter06/12/11 AT 6:56 AM

Italian fashion house Prada, which is seeking to raise up to $2.6 billion through a Hong Kong IPO, has generated five times demand for its offer, a source familiar with the matter told Reuters on Sunday.

The source declined to say which institutions have committed funds to the IPO or at what price point was the book covered. The information was based on road shows up to last Thursday, the source added.

The Milan fashion house, known for its leather handbags, brightly-colored shoes and long boots, launched the retail portion of the IPO on Sunday. It set an indicative price range of HK$36.5 ($4.69) to HK$48 ($6.17) a share for the IPO, confirming a Reuters story issued last week. That values the company between $11.4 billion and $14.6 billion.

The source declined to be indemnified as the information is not public. A Prada spokesman declined to comment.